Monthly markets review - April 2017
- Global equities advanced (in US dollar terms) in April. A broadly positive tone in economic data and encouraging news in the French election supported sentiment. Higher risk corporate bonds outperformed government bonds.
- US equities made gains amid strength in the information technology sector, although economic data was somewhat disappointing.
- Eurozone equities delivered robust returns amid encouraging economic data, a strong start to the earnings season, and the win for centrist Emmanuel Macron in the first round of the French presidential election.
- UK equities fell with large cap stocks with significant overseas earnings under pressure as a result of sterling strength.
- Japan registered a positive return. Economic data showed no progress on inflation but sustained strength in the labour market.
- Emerging markets outperformed developed markets, boosted by US dollar weakness and the ongoing synchronised pickup in global growth.
- In bond markets, riskier assets were markedly stronger than perceived safer assets such as government bonds.